But here’s the twist: banks might actually benefit. Most folks panic when interest rates go up. Loans get costlier. EMIs creep higher. But this time, the banking sector? They’re sitting pretty. Kotak says RBI will likely hike rates by another 50 bps over the next two meetings, taking the repo rate to 6%. Why? Inflation’s still ticking, and the global environment isn’t helping. But unlike past rate hikes; which often exposed weak loans and shaky balance sheets; this time banks entered the cycle with cleaner books. After strict rules were enforced post-2023’s unsecured lending frenzy, lenders are better prepared. Even better? Corporate loan demand is strong, and big private banks are poised to gain. Their deposits are mostly fixed-rate, while loan yields rise with the cycle; that’s how they grow their Net Interest Margins. So while you might feel the pinch on your home or car loan, banks? They might be quietly celebrating. The biggest irony? The very rates meant to cool inflation could end up boosting bank profits.